Indonesia Eximbank/Indonesian Export Financing Institution (LPEI) continues to make various strategic efforts to increase its role in driving national export growth. One of them is by building insurance product cooperation, especially in the form of providing Trade Credit Insurance (TCI). This collaboration is outlined in the Cooperation Agreement (PKS) signed by LPEI and PT Bank Rakyat Indonesia (BRI) regarding Accounts Receivable Protection Insurance. This signing is a form of LPEI's efforts to carry out one of its four main mandates, namely insurance while at the same time strengthening commitment in order to enhance cooperation between the two institutions to support exports. This Cooperation Agreement is a follow-up to the Memorandum of Understanding that was signed by both parties on April 13, 2022 concerning the Provision and Utilization of Banking Services as an umbrella for various cooperation opportunities in export supporting banking services. The signing of the PKS from LPEI was carried out by the Executive Director for Business Development, Maqin U. Norhadi and the Managing Director for Financing, Dikdik Yustandi and the Director of Institutional & Wholesale Business BRI, Agus Noorsanto at the BRI Head Office, Tuesday (12/12). Exports provided by LPEI in the form of Trade Credit Insurance are expected to support Bank BRI in optimally expanding credit, with more mitigated risks and protection of cash flow for export business actors against default by foreign buyers so that export business actors will be more protected," said Maqin .
Through this collaboration it was agreed that Bank BRI would use the LPEI Accounts Receivable Protection Insurance product in order to mitigate the risk of losses that might arise from failure to pay by the buyer on Trade Receivables belonging to BRI customers. In addition, LPEI's export insurance products are also intended to add convenience to Bank BRI in providing Account Receivable Financing facilities to its customers. Meanwhile, LPEI will provide compensation to Bank BRI of up to 90% if the buyer does not make payments to BRI customers due to commercial or political risks. LPEI's export insurance support is considered very useful in increasing the confidence level of customers/exporters and banking, especially in penetrating certain destination countries and buyers. Maqin continued, the commitment of the two institutions to synergize and collaborate in terms of providing complementary services and facilities is expected to facilitate LPEI and BRI customers throughout Indonesia, encourage the creation of export-oriented business actors who are more competitive, with sustainable businesses and can support the strengthening of national economy. "We hope that in the future this collaboration opportunity will continue to be improved and we are ready to explore other potential collaborations with Bank Rakyat Indonesia," said Maqin. On the same occasion, BRI Director Institutional & Wholesale Business Agus Noorsanto added that cooperation with LPEI is a form of Bank BRI's commitment to supporting transactions for export actors, especially MSMEs.

Source: https://medanposonline.com/economy/dorong-permbuh-ekspor-lpei-dan-bri-kolaborasi-melalui-product-asuransi-ekspor/